At the recent investor meeting, ADANI officials said that the decrease in borrowing costs will be the result of the elastic business model that can withstand multi -credit rating upgrades, more stable import profiles and external volatility.
Last month, CRISIL upgraded the rating of ADANI POWER to ‘AA’ and revised ADANI Green’s outlook as ‘POSITIVE’.
In the case of capital-intensive businesses such as infrastructure, even the reduction of 50 Basis points in the borrowing cost can reduce the total cost of the 20-year project by 10-15%, the company told investors.
The group’s run rate EBITDA surged nearly four times from 25,389 rupees of FY19 to 91,693 rupees on TTM (12 months later) on December 24. In addition, 75%of profits come from assets increased from 48%in assets of ‘AA-‘ or higher. This strong import base further reduces credit risk, making debt financing more attractive.
In addition, ADANI’s leverage guarantees financial stability in aggressive expansion plans while maintaining a pure score of 2.46 times with pure debt to EBITDA.This group invests more than $ 100 billion (RS 8 Lakh Crore) over the next $ 1 billion for $ 1 billion. Two-year DIGHICINT over Twel-Month EbitDa (Twel-Month Ebitda). Sing said that the business of large corporations is positive for cash flows and will provide funds to their growth. “We do not need capital for a third -party business plan with debt or capital,” he said. “We’ve said that we’ll invest nearly $ 100 billion over the next decade. All of the capital is cash after taxes produced by businesses.”
Singh destroyed the group’s finances and explained that it is about $ 7.1 billion if it is more than 10 years to generate cash. In addition, the project under construction will add $ 41 billion in this period, and the company currently has a free cash reserve of $ 6 billion.
Singh said, “This provides about $ 11.8 billion.” We have booked a maturity over $ 20 billion for the next 10 years. Therefore, we have about $ 97 to $ 9.8 billion. And we say we’ll invest only $ 100 billion. “
He emphasized that the ADANI group can meet all debt maturity without re -loans and fully implement the business plan. “Excessive questions come only when we want to invest more than $ 100 billion.” And basically, because our risk posture is, the risk posture is mini.
